This paper is the third in a series of Analytical Insights papers, which provide accessible, up-to-date analysis of educational datasets. The insights in this paper are drawn from the latest National Assessment Program Literacy and Numeracy (NAPLAN) and Longitudinal Literacy and Numeracy in Australia (LLANIA) data to discuss student participation and engagement with the tests -- factors that impact the quality and usefulness of the results. This paper is a follow-up to the Australian Education Research Organisation (AERO)'s first Analytical Insights paper, "NAPLAN Participation: Who is Missing the Tests and Why it Matters." It provides the latest trends and highlights important considerations for the interpretation of students' results and future implementation of NAPLAN. Key points in this paper include: (1) NAPLAN participation has largely recovered since the pandemic, with participation rates in 2024 either higher (Year 5) or not significantly different (Years 3 and 7) to participation in 2019. There was a sharp increase in the proportion of students who were absent from NAPLAN tests in 2022 -- most likely due to increased sickness and natural disasters in that year -- but the spike in absence mostly disappeared in 2023; (2) AERO's previous analysis (2023) showed students with lower performance were more likely to miss the tests. This analysis shows some subgroups of students (e.g., students in very remote areas and First Nations students) continue to participate at a considerably lower rate than the national averages; (3) Reasons for non-assessment in NAPLAN vary across locations; (4) Test engagement is another factor that can influence the validity and utility of NAPLAN results; and (5) Although participation in NAPLAN is important, the higher priority continues to be supporting the attendance and engagement of students at school. Improved school attendance across school days more generally may increase attendance on NAPLAN testing days, facilitating more accurate information about students' learning. [AERO's work is made possible by the joint funding it receives from Commonwealth, state and territory governments.]